Construction Jobs: Direct Hire or Subcontracts

Introduction 

Construction jobs are several and they are divided into construction of roads, bridges, highways, building structures, power plants and other miscellaneous work. The management of any organization will have two options to execute a construction job. The first option is through direct hiring of employees and the second option is to execute the job through subcontracts. An obvious question always arises in your mind as to whether subcontracts are better than direct hiring. In the case of subcontracting a work, you will be offered some type of warranty period. But, in direct hiring you need extra efforts to hire suitable skilled people to complete the job.

Direct hiring of employees

Sometimes it is necessary for you to hire a person straightaway when you are dealing with construction work. In such cases it is better if you recruit the staff to manage the projects. Normally, construction jobs that are simple in nature are executed by employees who are directly hired. This method of direct hiring provides you with an important and prominent asset consisting of your own workforce. Before permanently hiring an employee, it is essential for you to determine the duration of his employment and the advantages that you can derive from his work. There are certain benefits of hiring employees directly. Some of them are: the employer forms the rules for the success of project. Results can be seen immediately by the company engaged in construction work. Your ideas and thoughts can be continuously implemented by the employee. Multitasking services can be offered by the employee who can perform in various construction works. Besides, special training for doing construction jobs can be provided to the working staff. Realizing special requirements of the company, the employee will be in a position to give his valuable input. Some of the other benefits cover monitoring of quality control during the execution of the project, and hours of working can be efficiently utilized. The cost of constructing a project can be under your control. It is not difficult to hire employees who are expected to be loyal to your organization.

Execution of the job through subcontracts 

In any industry that is engaged in a construction project, subcontracting agencies are chosen for this business, especially during complicated conditions. Precautions and legal methods have to be adopted while catering and completing special work. But, this is regarded as the best method to monitor a job without incurring overhead costs or by hiring extra workforce. Subcontractors’ work is beneficial when the quantum of work in the project is too wide. You will be able to have some free time to focus on the growth of the business of your construction. This method proves to be cost effective while comparing with direct hiring of employee. Some of the other benefits indicate that you can reduce the benefits and taxes paid to the employee. You need not provide your equipment to the subcontractor. It is vital to include a warranty clause while writing the contract documents meant for construction work. These contracts can also be terminated without any difficulty.

Outlook

Advantages and disadvantages exist in both direct hire and subcontracts options. Today, as the industry dealing with construction jobs is fast growing, it requires specific work force that can be reliable, flexible, and cost effective.

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